Costs are up while Medicare payments are down.
A new report from the American Hospital Association shows that massive growth in expenses and rising inflation are fueling continued financial challenges for America’s hospitals and health systems. Hospitals are experiencing significant increases in expenses for workforce, drugs, and medical supplies.
Two years of responding to COVID-19 cases has taken a toll on hospitals, placing a strain on the nation’s healthcare workers. Inflation has also resulted in decreases in demand for health care services, as rising costs exceed wage growth. When the demand for health care services is down, hospital volume and revenues decrease.
A government watchdog report found private Medicare plans routinely rejected claims that should have been paid and denied services that reviewers found to be medically necessary.
As a result, hospitals are looking to Congress to provide the support needed now to keep hospitals solvent so they can continue to provide care to patients and communities.
A new study found that close to half of U.S. rural hospitals are operating in the red with at least 450 facilities at risk of closing their doors.
As the Lord Leads, Pray with Us…
- For members of Congress to be diligent and discerning in considering the additional funding for public health, hospitals, and foreign aid.
- For the president and his administration as they evaluate the economy and the impact of policies on private industry.
- For officials in the Center for Medicare and Medicaid as they evaluate coverages and claims.
Sources: Axios, CNN, USA Today, Fierce Healthcare
